Nuance Reports Record Fourth Quarter and FY2000 Results
Fourth Quarter Revenue Increases 206% to $17.4 Million
MENLO PARK, Calif., Jan. 30 /PRNewswire/ -- Nuance Communications, Inc. (Nasdaq: NUAN) today announced financial results for the fourth quarter and fiscal year ended December 31, 2000. Total revenue for the quarter increased to a record $17.4 million, representing a 206% increase over revenue of $5.7 million for the same period last year. Revenue for the fiscal year increased to a record $51.8 million, a 165% increase over revenue of $19.6 million reported in fiscal 1999.
The net loss for the fourth quarter was $6.0 million, or $0.19 per share, compared with a net loss of $7.5 million, or $0.34 per share on a pro forma basis, for the same period last year. Excluding the effect of non-cash compensation expense, in-process research and development, and amortization of intangibles, the pro forma net loss was $2.6 million, or $0.08 per share, compared with a pro forma net loss of $7.2 million, or $0.32 per share on a pro forma basis, for the same period last year.
The net loss for the fiscal year was $23.5 million, or $0.83 per share, compared with a net loss of $18.5 million, or $0.99 per share on a pro forma basis, for the prior year. Excluding the effect of non-cash compensation expense, in-process research and development, and amortization of intangibles, the pro forma net loss was $16.8 million, or $0.59 per share, compared with a pro forma net loss of $18.2 million, or $0.97 per share on a pro forma basis, for the prior year.
Software license revenue for the fourth quarter was $12.4 million, an increase of 209% over the same period in the prior year. Service revenue for the fourth quarter was $5.0 million, an increase of 197% over the same period last year.
As of December 31, 2000, the company had $228 million in cash and short-term investments.
"Our record revenues reflect the growing momentum behind our products which are driving the Voice Web marketplace," said Ronald Croen, president and CEO of Nuance. "During the quarter, we won significant deals with leading wireline and wireless carriers worldwide, expanded our enterprise business and extended our leadership in the portal market."
In the telecommunications sector, Nuance achieved substantial revenues in both the United States and international markets. Nuance expanded its business with British Telecom, Deutsche Telekom, MCI Worldcom, Sprint PCS and Verizon. Nuance also closed deals with approximately 20 other leading carriers and telecommunications service providers from around the world. Each of these companies is employing Nuance software for new voice-driven enhanced services and/or customer service applications.
In the enterprise space, Nuance grew its business in the travel, financial services and retailing around the world. Nuance saw follow-on orders from companies like American Airlines, British Airways, Lloyds TSB, Sears and many more. Nuance also experienced growth in a broad range of new market segments and added leading customers in the insurance, healthcare and energy industries. Additionally, in the portal market, Nuance expanded its relationship with OnStar supporting the voice-enabled Virtual Advisor service.
Nuance also continued to broaden its channel, and saw strong performance from an increasingly diverse and global partner base. In the quarter, Nuance signed an OEM agreement with Siebel Systems for their voice-driven sales force automation product, Siebel Voice.
Additionally, Nuance expanded its technology offering with the acquisition of the innovative voice instant messaging company SpeechFront, and the introduction of the Voice Web Server.
About Nuance
Nuance develops, markets and supports a voice interface software platform that makes the information and services of enterprises, telecommunications networks and the Internet accessible from any telephone. Every day, millions of people interact with Nuance systems at blue chip companies like BeVocal, Lycos, Merrill Lynch, Nomura Securities, Sprint PCS, and Tellme Networks. Nuance is also driving the creation of the Voice Web and delivering software for V-Commerce (voice-enabled e-commerce) services and applications. Nuance is headquartered in Menlo Park, Calif., with global sales offices and partners supporting solutions in multiple languages around the world. For more information about Nuance, visit www.nuance.com or call 888-NUANCE-8.
This press release contains forward-looking statements, including, for example, those relating to the growth of the market for Nuance products and the future sales of those products. There is no assurance that the results contemplated by any forward-looking statements will be realized. The following factors, risks and uncertainties, among others, could cause actual results to differ materially from those described or implied in this press release's forward-looking statements: the risks that prospective customers may not adopt or purchase Nuance products and current customers may not fully deploy Nuance products; the risk that Nuance software products may not achieve widespread acceptance; the risk that Nuance may not respond to rapid change in the market for voice interface software; and other factors described in Nuance's filings with the Securities and Exchange Commission, including but not limited to Nuance's prospectus dated Sept. 26, 2000. Nuance does not undertake to update any oral or written forward-looking statements that may be made by or on behalf of Nuance.
NOTE: Nuance is a registered trademark of Nuance Communications, Inc. All other trademarks are the property of their respective owners.
Nuance Communications, Inc.
Consolidated Statement of Operations
For the Three Months and Year Ended December 31, 2000
(In Thousands, Except Per Share Amounts)
Three Months Ended: Year Ended:
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2000 1999 2000 1999
Revenue:
License $12,366 $4,003 $37,551 $13,613
Service 5,048 1,696 14,267 5,954
Total revenue 17,414 5,699 51,818 19,567
Cost of revenue:
License -- -- 53 --
Service 3,919 1,629 10,699 5,460
Total cost of revenue 3,919 1,629 10,752 5,460
Gross profit 13,495 4,070 41,066 14,107
Operating expenses:
Sales and marketing 10,740 6,415 34,072 17,636
Research and development 5,777 4,040 20,183 11,793
General and administrative 3,178 1,128 9,978 3,517
In-Process R&D 1,500 -- 1,500 --
Amortization of intangibles 296 -- 296 --
Non-cash compensation 1,570 310 4,862 310
Total operating expenses 23,061 11,893 70,891 33,256
Loss from operations (9,566) (7,823) (29,825) (19,149)
Interest and other income,
net 3,694 360 6,701 697
Loss before income taxes (5,872) (7,463) (23,124) (18,452)
Provision for income taxes 119 22 350 22
Net loss $(5,991) $(7,485) $(23,474) $(18,474)
Basic and diluted net loss
per share
(0.19) $(2.41) $(1.03) $(6.32)
Shares used to compute basic
and diluted net loss per
share 31,472 3,109 22,717 2,924
Pro forma basic and
diluted net loss per share $(0.19) $(0.34) $(0.83) $(0.99)
Shares used to compute pro
forma basic and diluted net
loss per share 31,472 22,085 28,386 18,713
Nuance Communications, Inc.
Condensed Consolidated Balance Sheets
December 31, 2000
(In Thousands)
December 31, December 31,
2000 1999
ASSETS
Current assets:
Cash and cash equivalents $219,047 $18,073
Short-term investments 8,728 23,353
Accounts receivable, net 19,106 4,892
Prepaid expenses and other current assets 4,280 3,027
Total current assets 251,161 49,345
Property and equipment, net 9,414 4,276
Intangible assets 5,244 --
Other assets 13,546 101
Total assets $279,365 $53,722
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of debt $12 $1,043
Accounts payable 1,649 3,024
Accrued liabilities 12,416 7,034
Deferred revenue 10,745 4,337
Total current liabilities 24,822 15,438
Other LT Liabilities 2,552 1,333
Total liabilities 27,374 16,771
Stockholders' equity 251,991 36,951
Total liabilities and stockholders' equity $279,365 $53,722
SOURCE Nuance Communications, Inc.
CO: Nuance Communications, Inc.
ST: California
IN: CPR MLM TLS
SU: ERN
01/30/2001 16:59 EST prnewswire.com |
